Luxembourg on the Brink of Shariah-Compliance

The quest for petrodollar capital is prompting Luxembourg to issue a Shariah bond.

There is still hope that Luxembourg might be brought back from the brink, however. The transaction is being scrutinized by the Council of State, a body which advises the national legislature and they’re exhibiting appropriate skepticism…

“First, in the world of finance, many experts including Muslims argue that, in principle, funding via sukuk is more costly for the issuer than a classic bond financing.”